Timing the Market
Just in case you didn’t know, it is a great time to buy a house! Whether you are renting, refinancing, trading up, or building, many factors are in your favor. Recent changes in home financing, tax benefits, and investment opportunities are keeping the real estate momentum moving forward.
“Free Money” is one incentive for purchasing your first home. As a first time buyer you may qualify for local or state grants that assist with down payment and closing costs. With good credit, a down payment is not even needed to buy a home. Times are changing and the benefits to owning real estate keep getting better and easier. The stretch loan mortgages such as the interest only and the forty year loan are lending tools for a diverse buyer demographic. Need I mention that only a handful of times in the last thirty years had the fixed rate mortgage been this low?
Great financial news for new and current home owners is the recent change in private mortgage insurance. For the first time in history, you may qualify to deduct your monthly mortgage insurance from your taxable income. When applying for your new home loan, ask your lender to prepare at least two Good Faith Estimates for your financing options so you can make the best financial choice for you.
Have you ever considered a second home? If you qualify, the gain you would have from a second residence is tax exempt as long as you reside in it for two out of a five years. With many “snow bird” markets experiencing a pull back in pricing, this might be your time. In 2006, the National Association of Realtors reported that for the first time in history, the median sales price for a condominium was higher then the single family home.
From first time buyers to secondary residences, it is your time to buy real estate. Lending options, home loan rates, and tax benefits are all in your favor. Make sure to review all of your financial options in your next real estate transaction. It may be easier then you think!
Heather Morris
